TARP Funds Abuse – Who’s Blowing the Whistle?

An AP story I read yesterday cites that the potential cost for every American in aiding the financial rescue of our economy is about $80,000.

With such a high investment in our economy, government and taxpayers have a well-vested interest in seeing these funds appropriately spent and monitored. This means those of us working in bailout recipient companies have the opportunity to raise alarm when spending goes astray – in other words, blow the whistle.

A Washington Post article from Monday highlights findings from the inspector general regarding banks’ misuse of TARP Funds.

According to the story, the inspector general surveyed 360 banks that received money through the end of January and roughly 80 percent reported it used some of the money to support new lending.

The report, compiled by special inspector general Neil Barofsky, is clear in its request that the Treasury Department be accurate and transparent in its reporting to the American people, the individuals helping fund these relief programs.

The kicker is that though the report calls on the Treasury Department to require regular and detailed information from banks about the use of taxpayers’ money, the Treasury has refused to collect it.

We believe TARP guidelines were created in an effort to increase transparency, and to us, the Treasury’s refusal to follow through should raise alarm for taxpayers.

Many of the banks that received TARP funds got help to make investments, repay debts or buy other banks – not increase lending.

My point in all this: Those in the banking industry who see this abuse and know it’s happening owe it to fellow taxpayers and the government to report TARP fund abuse.

“Whistleblower” can be a touchy word — it can be viewed as an ally to the taxpayer, or as the elementary “tattletale.” However, whistleblowers play an increasingly important role in helping private litigation assist the federal government in monitoring and correcting corrupt practices.

As we’ve mentioned before, some take advantage of these federal programs, and with more than $3 trillion pledged to help our nation’s institutions, wayward practices are bound to come to the surface. Without the eyes and ears of employees identifying questionable practices, large institutions and corporations could continue undermining customers, employees, and in this instance, taxpayers and the government.

To learn more about the role of whistleblowers in TARP fund abuse we invite you to visit our Web site – www.stoptarpfraud.com.